The Compensation Committee views change in control and non-change in control severance protection for officers as a necessary part of compensation to
remain competitive in the market. A substantial majority of oilfield service companies provide such benefits. While the Compensation Committee recognizes there are variation in types, amounts, eligibility requirements and other terms and conditions
among companies, the aggregate potential value remains competitive and does not significantly vary from similar programs at peer group companies.

The Compensation Committee views change in control and
non-change in control severance protection for officers as a
necessary part of compensation to remain competitive in the
market. A substantial majority of oilfield service companies
provide such benefits. While the Compensation Committee
recognizes there are variation in types, amounts, eligibility
requirements and other terms and conditions among companies, the
aggregate potential value remains competitive and does not
significantly vary from similar programs at peer group companies.